VICI Properties Inc., to Acquire remaining 49.9% interest in MGM Grand Las Vegas and Mandalay Bay Joint venture from Blackstone Real Estate income trust

Blackstone Real Estate Income Trust, Inc. and VICI Properties Inc. announced jointly today that they have entered into a definitive agreement in which VICI, will acquire BREIT's 49,9% interest in the joint venture for cash consideration of approximately $ 1.27 billion and VICI's assumption of BREIT's pro-rata share of the existing property-level debt. 

The property-level debt has a principal balance of $3 billion, matures in 2032, and bears interest at a fixed rate of 3.558% per annum through March 2030. 

The properties, situated at the south end of the Las Vegas Strip in Las Vegas, Nevada, are subject to an existing triple-net lease agreement between the joint venture and MGM Resort International. The lease will generate annual rent of approximately $310 million upon the commencement of the next rental escalation on March 1, 2023. 

Jon Gray, President and Chief Operating Officer of Blackstone, said: "VICI Properties has been an outstanding partner on these assets and we are incredibly pleased to have deliverd such exceptional returns for our BREIT investors. Las Vegas continues to be a high conviction market for Blackstone".